Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5867 in a very high volume. In the daily time frame, I found a supply bar and a strong head-and-shoulders confirmed formation (a broken neckline). In the H4 time frame, the pair is trading below 50, 100, 200 SMA. I found 2 climatic actions in a background and a strong up-thrust bar in a ultra-high volume (sign of weakness). In the M30 time frame, I found confirmed bearish flag and we may expect further downward continuation. Be careful when buying EUR/NZD at this stage since lower prices are expected. I placed Fibonacci expansion to find potential support levels. I got Fibonacci expansion 61.8% at the level of 1.6070 (broken), Fibonacci expansion 100% (almost tested) at the level of 1.5840, and Fibonacci expansion 161.8% seen at the level of 1.5470. If the price breaks the level of 1.5800, we may see potential testing of 1.5470.
Fibonacci Pivot Points:
Trading recommendations : Buying EUR/NZD looks very risky at this stage since the price confirmed the head-and-shoulders formation. Watch for potential selling opportunities.
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